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Duplex Or Not?

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numbercruncher

Freshman Member
Joined
Jun 26, 2008
Professional Status
Appraiser Trainee
State
Texas
I have an SFR refi order from a client. The subject was originally a small bungalow with a detached garage and full apartment above the garage (could produce income, not currently). The garage was converted to living space and connected with permits to the small bungalow. All utilities are on a single meter with a single address. I am inclined to treat it as an SFR with an accessory unit apartment. There is no zoning in Houston and the county has it classified as a duplex. Should this be completed on a URAR or 1025?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
There is no zoning in Houston and the county has it classified as a duplex. Should this be completed on a URAR or 1025?

You have to determine which use is the highest and best use first and that will tell you what the market values most.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I have an SFR refi order from a client. The subject was originally a small bungalow with a detached garage and full apartment above the garage (could produce income, not currently). The garage was converted to living space and connected with permits to the small bungalow. All utilities are on a single meter with a single address. I am inclined to treat it as an SFR with an accessory unit apartment. There is no zoning in Houston and the county has it classified as a duplex. Should this be completed on a URAR or 1025?

Imo you have to inspect it, but sounds like the changes the owner has made to the house, connecting the former detached area, all utilities on single meter etc, sounds like just a rambling single family residence now , if area above what was the garage is not accessible from main dwelling and has its own exterior entrance, then that space sounds like an ADU or mother in law suite (perhaps depending on if it has a kitchen or not)
 

timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
I have an SFR refi order from a client. The subject was originally a small bungalow with a detached garage and full apartment above the garage (could produce income, not currently). The garage was converted to living space and connected with permits to the small bungalow. All utilities are on a single meter with a single address. I am inclined to treat it as an SFR with an accessory unit apartment. There is no zoning in Houston and the county has it classified as a duplex. Should this be completed on a URAR or 1025?
From your description of the property, it sounds to me like it is a SFR with an accessory unit and whether you call it a 1 unit with an accessory unit or a 2 unit property it should have no effect on the value/marketability or the HBU determination as either way it is a legal property with a rentable second unit/accessory unit

You should be aware that even if you consider the subject property to be a two unit property (as opposed to a 1 unit property with an accessory unit), the appraisal report can still be reported on the URAR (Fannie Mae form 1004) in many cases...See Fannie Mae Selling Guide Sec. B4-1.2-01, Appraisal Report Forms and Exhibits (04/15/2014) for more information:

For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory apartment) based on interior and exterior property inspections. Form 1004 also may be used for two-unit properties, if each of the units is occupied by one of the co-borrowers as his or her principal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). In addition, appraisals for units in condo projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the homeowners’ association fees and the quality of the project maintenance. Appraisals reported on Form 1004 must be completed in accordance with the UAD Specification.
 

AMF13

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Design (style) of the day:

Rambler. :peace:
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Personally I don't like calling anything a "duplex" that isn't a mirror image, or if a two-story, identical floor plan with rare exception of slight variations due to slope, lot design, etc. A SFR with accessory dwelling/apartment works for me
 

Walter Kirk

Senior Member
Joined
Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
Personally I don't like calling anything a "duplex" that isn't a mirror image, or if a two-story, identical floor plan with rare exception of slight variations due to slope, lot design, etc. A SFR with accessory dwelling/apartment works for me
The term duplex has different meanings in different market areas. In my area a duplex is a two family dwelling. 90 miles away in New York City a duplex is a two story apartment. Some areas call two single family dwellings with a common wall a duplex. In this case it sounds like you have a two family dwelling.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
What should the property primarily be used as (who is the likely buyer and what are they going to do with it):
A SFR (with accessory unit); the likely buyer being an owner-user?
A two-unit income property; the likely buyer being an investor?
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
No separate meters * would go single family with accessory unit unless this is typical for your market ? Also how was this ordered as 2 units or SFR ?
 
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